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2015 (12) TMI 1103 - AT - Central ExciseDenial of concessional rate of duty - Due to shortage of space, the appellant kept the imported materials partly adjacent to the factory premises - demand of cenvat credit alongwith interest and imposed penalty of equal amount - Held that:- Adjudicating Authority had observed that there was a procedural lapse of not applying to the Dy. Commissioner under Rules 8 of Cenvat Credit Rules 2004 for keeping waste paper in the go-down adjacent to the factory. It is further observed that, it is not a procedural lapse but, clear violation of the said Rules. The appellant is a Limited company in organized sector and they should have obtained proper permission to store the imported waste i.e., inputs, outside the factory premises - assessee is entitled to storage of inputs outside the factory of the manufacturer, subject to the permission from the Dy. Commissioner, Central Excise or the Asstt. Commissioner, Central Excise as the case may be, having jurisdiction over the factory of the manufacturer. The proviso to Rule 8 states that, if such input is not used in the manner specified in the rules, the manufacturer of the final products shall pay an amount equal to the credit availed therein. In my considered view, the demand of cenvat credit would arise if the manufacturer fails to establish that the input in question was not used in the manufacture of final products. - impugned order is modified to the extent that the demand of Central Excise duty of ₹ 8,99,996/- alongwith interest is upheld. The Adjudicating authority is directed to re-examine the balance amount of demand of ₹ 6,03,392/- alongwith interest and imposition of penalty - Appeal disposed of.
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